Bloomberg reported yesterday that BlackRock is considering ways of tokenizing ETFs, citing sources. The crypto sector has proven to be a lucrative one for BlackRock, especially its Bitcoin ETF, IBIT, which experienced rapid growth after launch. It currently has a capitalization of around $86 billion.
It has also been active in tokenization, partnering with Securitize for the BUIDL tokenized money market fund, which is now capitalized at $2.2 billion, with Ethena’s USDtb stablecoin accounting for half of that. On the TradFi front, BlackRock has a long standing collaboration with JP Morgan’s Kinexys. More recently it worked with BNY to issue DLT shares in its $159 billion Treasury Trust Fund.
But tokenizing ETFs is a different matter altogether. The most notable part of the Bloomberg report was not that it was exploring tokenization, but the “ways to make exchange-traded funds available as tokens”. (Emphasis added.)
The most obvious path is to just tokenize the ETF shares, providing the usual fractionalization benefits.
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
